The image of the profession, peer review and private company reporting were among key issues addressed by AICPA President Barry Melancon at the Members Advisory Forum on May 11, 2005, in Lansing. Other noted speakers talked about the CPA exam, advocacy and MACPA initiatives.

Image
Melancon told a record-breaking crowd of MACPA leaders that recent image research shows 97 percent
of general Business Decision Makers (BDMs) view the CPA as “favorable” compared to 94 percent in 2003. Survey results also indicate that 79 percent of BDMs and 82 percent of C-class BDMs (CEOs, CIOs, CFOs of large public companies) think the accounting profession has taken steps in recent years to address public concerns about corporate accounting.

“These are phenomenal results,” said Melancon. “They indicate the changes we’ve been making are appropriate. Today, we need to continue our focus on doing the right things – delivering on the promise of quality and ethics – which goes back to the core heritage values of our profession.”

Left to right. AICPA President Barry Melancon, MACPA Chair-Elect Peggy Haw Jury and MACPA Chair John Higgins.

Peer Review
Melancon also said the profession has an obligation to continue the peer review process. He noted that a number of changes related to peer review are occurring at the state regulatory level. State boards of accountancy across the country are moving toward requiring remittance of peer review results from licensees. Some states, Melancon reported, are seeking peer review results from the state societies as administrators. This conflicts with AICPA confidentiality provisions, so the AICPA is providing assistance to those state societies who face this dilemma.

In addition, numerous states – including Michigan – who currently do not require peer review are enacting legislation for mandatory peer review.

AICPA is working with NASBA to achieve uniformity, so peer review requirements will be consistent from state to state.

Private Company Reporting
Attendees were particularly interested in the conclusions of the Private Company Financial Reporting Task Force. While the issue of “big GAAP vs. little GAAP” has been considered numerous times over the last several decades, Melancon said this is the first time an AICPA task force has recommended the development of a model for creation of separate GAAP standards for private businesses. He explained that a significant shift in opinion over the past 20 years strongly suggests that private companies should be allowed to measure certain areas differently.

As of publication time, the AICPA Council is slated to consider the task force’s conclusions at its late May meeting.

Other Speakers
MACPA President Peggy Dzierzawski outlined important initiatives of the Association, such as financial literacy, image and advocacy. She shared numerous video and print clips of tax assistance programs, high school leaders events, Junior Achievement blitzes and more.

Michigan Board of Accountancy Licensing Administrator Suzanne Jolicoeur provided a recap of the first year of the computerized CPA exam and talked about factors that may lead to increased exam costs (see related story, State Board Update).

MACPA Lobbyist Tom Hoisington and State Senator Mike Bishop emphasized the importance of participation in the legislative process. They encouraged members to support the MACPA PAC, and to consider running for local or state office.

Michigan Accountancy Foundation (MAF) President Steve Epstein presented 16 scholarships to help students complete their fifth/graduate year of studies. The scholarship recipients were listed in the March/April issue of Leaders’ Edge.

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